State moves ahead on cold storage facility at port

Published: Tuesday, February 5, 2013 at 6:32 p.m.

Last Modified: Tuesday, February 5, 2013 at 6:32 p.m.

A new cold storage facility at the Port of Wilmington could help North Carolina catch up to its surrounding states while creating about 110 jobs.

The N.C. Council of State voted Tuesday to approve a ground lease allowing USA InvestCo to build a 75,000-square-foot cold storage facility to store fruit, vegetables and meat. The facility could ultimately be expanded to 300,000 square feet, in 75,000-square-foot increments.

“Considering we’re the second-biggest pork producer and second-biggest producer of poultry in aggregate ... we’d really like to keep that business in North Carolina,” said Chuck Schoninger, managing member of USA InvestCo.

The 110 jobs the facility is estimated to bring to the area include trucking, on-site packaging and management, among others. Schoninger estimated it could lead to about twice as many indirect jobs.

The project is contingent on the award of state and local incentives, but USA InvestCo is planning an initial investment of $13 million in the project.

“We’re working pretty diligently to try to get them,” Schoninger said, declining to discuss the amount of incentives needed.

Initially 20 years, the lease also has four five-year options, which could bring it to a total of 40 years. When the lease expires, the port will keep the privately built cold storage facility.

For the first five years, USA InvestCo will not pay rent, but the sixth year it will be $23,650 and escalate 3 percent annually after that.

Ports officials hope the facility will help them compete with neighboring ports in Norfolk, Va., Savannah, Ga., and Charleston, S.C.

“The existence of a modern, industrial cold-chain distribution center located at one of our state’s ports provides a strategic competitive advantage over competing neighboring ports,” Jeff Miles, the ports’ acting executive director, said in a news release.

North Carolina’s industries, including its $3 billion agricultural presence, are one reason ports officials are intrigued by the project.

“It’s additional business and it’s something that we didn’t have. It’s hard to argue against when you have the poultry industry,” said Danny McComas, chairman of the ports board.

<p>A new cold storage facility at the Port of Wilmington could help North Carolina catch up to its surrounding states while creating about 110 jobs.</p><p>The N.C. Council of State voted Tuesday to approve a ground lease allowing USA InvestCo to build a 75,000-square-foot cold storage facility to store fruit, vegetables and meat. The facility could ultimately be expanded to 300,000 square feet, in 75,000-square-foot increments.</p><p>“Considering we're the second-biggest pork producer and second-biggest producer of poultry in aggregate ... we'd really like to keep that business in North Carolina,” said Chuck Schoninger, managing member of USA InvestCo. </p><p>The 110 jobs the facility is estimated to bring to the area include trucking, on-site packaging and management, among others. Schoninger estimated it could lead to about twice as many indirect jobs.</p><p>The project is contingent on the award of state and local incentives, but USA InvestCo is planning an initial investment of $13 million in the project.</p><p>“We're working pretty diligently to try to get them,” Schoninger said, declining to discuss the amount of incentives needed. </p><p>Initially 20 years, the lease also has four five-year options, which could bring it to a total of 40 years. When the lease expires, the port will keep the privately built cold storage facility.</p><p>For the first five years, USA InvestCo will not pay rent, but the sixth year it will be $23,650 and escalate 3 percent annually after that.</p><p>Ports officials hope the facility will help them compete with neighboring ports in Norfolk, Va., Savannah, Ga., and Charleston, S.C.</p><p>“The existence of a modern, industrial cold-chain distribution center located at one of our state's ports provides a strategic competitive advantage over competing neighboring ports,” Jeff Miles, the ports' acting executive director, said in a news release.</p><p>North Carolina's industries, including its $3 billion agricultural presence, are one reason ports officials are intrigued by the project.</p><p>“It's additional business and it's something that we didn't have. It's hard to argue against when you have the poultry industry,” said Danny McComas, chairman of the ports board.</p><p><i></p><p>Adam Wagner: 343-2096</p><p>On <a href="http://www.starnewsonline.com/section/news41"><b>Twitter</b></a>: @adamwagner1990</i></p>